When Credit Becomes Bad And You Can’t Afford Your Loan
Being Approved For A Loan
and then being unable to afford to repay a loan is most borrowers nightmare. It can lead to extreme worry and a feeling of a loss of control which can be exasperated with the onset of calls and emails from the lender and any debt collection agencies working on behalf of the lender to recover the loan payments.
This is a key reason to not enter into a loan agreement lightly or on a whim. Securing finance is a serious business and entering a credit agreement should only be considered if you are confident that you will be able to repay the loan on time, even if your income circumstances do happen to change.
Failure to repay your loan on time will not only cause you stress it will damage your credit rating. Therefore it is imperative that you do contact your lender to discuss your circumstances and to arrange a repayment plan based on what you can afford to repay. The worst thing that you can do in a situation like this is to ignore the issue as it will only worsen the problem in the long run and result in a bad credit rating which will impact future borrowing.
Future Borrowing May Be By The Way Of Loans
credit cards, and mortgages. Any CCJs or defaults will remain on your credit file for 6 years which means you will have a bad credit during this time.
In order to improve your credit rating after this time, it is essential that you repay your bills and debts on time, this will build up your credit score, which will give you the opportunity to be in a better place in terms of future borrowing, meaning you will have access to better deals and interest rates.Further Help see Bad Credit Loans uk